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Marquis Shopping Center Up for AuctionBy Amber Lester Kennedy Tuesday, February 01, 2011
The Marquis shopping center, as originally conceived.
The shopping center will be sold in an open-outcry auction by CB Richard Ellis at noon on March 10 at the Westin Richmond. Would-be buyers must have a Cashier’s or Certified Check in the amount of $150,000 to bid, but there is no opening bid specified. The next owner will take on 233 acres of property adjacent to Water Country, including 268,691 square feet of retail. The sale would include buildings that house JC Penney, Dick’s Sporting Goods, Kohl’s and Best Buy; a Target in the shopping center owns its building. In its description of the property, CB Richard Ellis says, “This is a tremendous opportunity for an investor to acquire an institutional quality asset, situated in a high traffic corridor with strong demographics, with the potential to significantly increase the current density and enhance net operating income.” The next owner will also inherit approximately $33 million in debt, according to Jim Noel, economic development director for York County. About $4 million is owed to the Marquis Community Development Authority, which issued $30 million in bonds to pay for the infrastructure of the center. The businesses haven’t generated enough tax revenue to pay the debt service, so CIT has not made payments. Another $9 million in mechanical liens for site work and construction work needs to be paid, and about $20 million is owed to the tenants, who opted to pay for some building construction with the expectation they’d be repaid by the developer. Because they’re owed money, the tenants are not currently paying rent. The auction announcement brings more uncertainty to the future of the shopping center, which has suffered financial troubles since the recession began, less than a year after its first store opened in October 2007. The original developer, Premier Properties USA, went bankrupt in the summer of 2008, with investor Dominion Capital taking control. When Dominion didn’t make payments, primary lender CIT foreclosed on Dominion and took ownership of the Marquis. Since then, CIT negotiated with Washington, D.C.-based Western Development and Atlanta-based Madison Retail LLC to try to get the rest of the shopping center developed. Madison entered a purchase agreement with CIT in December 2009. The purchase agreement entitled Madison one year of time to do its due diligence and investigate the financial details of the development. In August, Madison sent a letter to CIT that indicated it planned to drop its option to buy the center. Noel says Madison “still maintains an interest,” and he has been working with another interested developer, as well. There’s still time for an interested buyer to step up before the auction takes place, he says. The ideal owner will need to have plenty of cash, Noel says. “The attributes of the ideal owner would be deep pockets, good relationships with national tenants and they have to be patient,” he says. “What needs to happen is they need to finish this development, and be able to carry it for a little while until it can start making money.” |
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Comments
Apparently no one has.
Maybe Burger is on to something! We could have history, amusement & sports all wrapped in one quaint package. What tourist could resist Williamsburg then? Not that I think Target or the other stores at the Marquise would appreciate the sudden change in plans, & our berg (thankfully) doesn't have the nightlife associated with pro sports, but it's sure an interesting land-usage proposal!
Over all I believe this “traditional mall without the roof” concept isn’t worth the effort it takes to shop there –- and I’m a product of The Mall generation! Short Pump in Richmond does have the right feel –- it’s quite enjoyable to be there on a pleasant day, but in cold or wet weather...? No thank you. I can't imagine spending the better part of a day at the Marquise as it is now, nor would I want to even if it were fully developed, frankly!
1- The Target is less crowded (this only applies on busy shopping days)
2- I like Best Buy, but I hate Newport News. Problem solved.
However, the Marquis is poor execution of a poor idea. Why would you need a large shopping center in that area? I believe the initial plan was for 250 stores.
Williamsburg already has lots of shopping. York County and Newport News already has lots of shopping. The immediate area lacks the volume of shoppers necessary to build a center that large and few people are going to suddenly hop off at a random I-64 exit and spend the day shopping.
I hate to be derogatory (wait maybe I like to be derogatory), but how do fools like this get in business? My kids Lego cities are better thought out.
Suzy, I agree with you on the upscale stores. Unfortunately they tried that originally but were turned down by them all. Contrary to what people want to believe, this is still more of a blue collar area than it is uptight, I mean upscale.